Wage arrears may be paid off in 2016

12/15/15 19:35

Wage arrears may be paid off in 2016

"Though 2016 projections are not favourable, this task must be fulfilled in several stages," said the president

Tiraspol, 15 December. /Novosti Pridnestrovya/. President Shevchuk held a meeting with the acting premier and the government's economic leadership, the presidential press office reports. According to the acting finance minister, Yelena Girzhul, a downward trend in tax payments into republican and local budgets is currently continuing. As of today, these budgets, as well as the budget of the Unitary State Fund of Social Security, from which pensions are paid, have fallen short of 728 million roubles as compared to the same period in 2014.

Besides, the budget deficit on social protection items, which is not secured by funding sources, is estimated at 555 million roubles. So, the budgets' lost revenues have amounted to nearly 1.3 billion roubles ($120 million).

Yelena Girzhul told the president that the payment of current wages is being made in compliance with a schedule. Besides, the Ministry of Finance has begun to pay off wage arrears to the public sector employees who quit their jobs.

«The current indebtedness to other public sector workers has amounted to 300 million roubles. We have no funds to clear this indebtedness this year, which is why the corresponding sum is budgeted for 2016 and, if there is a funding source, will be paid off," said Yelena Girzhul.

According to the acting social protection and labour minister, Oksana Bulanova, pension arrears have been paid off since the beginning of December following the president's instruction and the government's order.

«The procedure has been worked out, and pensioners have been informed on the date of arrears repayment," said Oksana Bulanova. She also noted that the pensioners who want to receive repayments prior to the scheduled date may come to social insurance centres where additional cashier's offices have been opened.

«The significant factor is the proportion of cash, foreign currency reserves and the national currency exchange rate. There is a certain correlation here," said the president. «The central bank said first that repayments would be made in several months, but the plans were reviewed and I was told it could be done in December.

«The central bank has assured it will do its best to prevent the repayment of arrears alongside the payment of pensions from affecting the national currency exchange rate. In this connection, drawing on support from the central bank, we are planning to clear the indebtedness across the country on 22−23 December," said Oksana Bulanova.

Yevgeny Shevchuk highlighted the fact that the repayment of arrears is being made out of borrowed funds and not at the expense of tax payments. «The country has increased external borrowings. We have to increase our debt obligations to provide, first of all, the payment of pensions," said the president. «I want the government, particularly the Ministry of Social Protection and Labour, to continue monitoring the situation and see that money is received by all recipients.»

Yevgeny Shevchuk also charged the government to concentrate efforts to plan expenditures and clear the indebtedness to public sector employees in 2016. «Though 2016 projections are not favourable, this task must be fulfilled in stages," underscored the president.

The acting prime minister, Maya Parnas, also informed the president that she had held a number of meetings with representatives from the central bank and Sberbank to discuss the provision of pensions at the beginning of the following year. «We have worked out a mechanism which will enable us to start paying pensions from 4 January instead of 11 January when banks start to work after New Year's holidays," said Maya Parnas.

 

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